The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of AUDUSD to less than 0.7600 following some key economic releases. The technical bias shall remain bullish because of a higher high in the recent upside move.
As of this writing, the pair is being traded around 0.7593. A support can be noted around 0.7470, an immediate horizontal support ahead of 0.7400, the psychological number and then 0.7389, another trendline support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.7615, an immediate trendline resistance level ahead of 0.7700, the psychological level and then 0.7749, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 0.7389 support area is intact.
Yesterday we saw comments from Chair of the Federal Reserve Janet Yellen, although she failed to prevent the sharp drop off in the Dollar which slumped by around one percent against its major peers. Yellen disappointed some of the market by failing to reinforce her recent hawkish bias. She instead commented on financial stability by claiming that a repeat of the recent financial crisis would unlikely take place again in our lifetime.
Earlier in the day we also saw a set of relatively hawkish comments from fellow Federal Reserve member Patrick Harker. Harker claimed that the Fed was “on track”, and threw his support behind an additional interest rate hike in the US before the end of the year. He echoed recent communications from Janet Yellen which suggest that the recent bout of underwhelming inflation could prove temporary. However, he claimed it would take a bit longer for prices to rebound back towards the central bank 2% goal.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.